Hi my understanding of this is that a local class is the same as a local veriable in that you create the class inside a method and the life cycle of that class is only in the scope of the method. Inner class is outside any method but within the scope of a class. Hope that helps...
Every class declared within the body of another class is known as a nested class. If the nested class does not have a name, then it is an anonymous class. If the nested class has a name, then it is not anonymous. If the nested class has a name and is declared inside of a method, constructor or any block, then it is a local class. If a nested class does not have a name, then it can not be called a local class even if it is declared inside of a block. Therefore, an anonymous class is never called a local class. If the nested class has a name and is not declared inside of a method, constructor or any block, then it is a member class. If the class is not nested, then it is a top level class. Please note that this question is more rigorous than those that one might expect to find on the real exam. It has been included here as a convenient place to define some terms that are used to explain the answers to some of the other questions that appear in this mock exam.
see http://www.danchisholm.net/july21/topic/section1/nested1ans.html and: http://www.danchisholm.net
Every class declared within the body of another class or interface is known as a nested class. If the nested class does not have a name, then it is an anonymous class. If the nested class has a name, then it is not anonymous. If the nested class has a name and is not declared inside of a method, constructor or any block, then it is a member class. If a member class is not static, then it is an inner class. If a class is not nested, then it is a top level class. A nested class that is static is sometimes referred to as a top level class, but that usage of the term is confusing and should be avoided.